SENATE BILL 1710

By Dickerson

HOUSE BILL 1749

By Faison

AN ACT to amend Tennessee Code Annotated, Title 4,

Chapter 29; Title 39, Chapter 17, Part 4; Title 50;
Title 53, Chapter 11; Title 67 and Title 68, relative
to medical cannabis.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 68, is amended by adding the following

language as a new chapter:

68-7-101. This chapter shall be known and may be cited as the "Medical Cannabis Act."

68-7-102. As used in this chapter:

(1) "Allowable amount" means the amount of usable cannabis product measured

in doses or units as determined by the commission for a corresponding debilitating

medical condition that a licensed dispensary may dispense to a qualifying patient in a

thirty-day period. For purposes of determining the maximum amount of cannabis

product that may actually be possessed by or for a qualifying patient, "allowable amount"

means twice the allowable amount of cannabis product that a licensed dispensary is

authorized to dispense to the qualifying patient in a thirty-day period;

(2) "Authorized form of cannabis" or "authorized form" means a cannabis

product produced in a form approved by the commission for dispensation to a

cardholder;

(3) "Bona fide practitioner-patient relationship" means:

(A) A practitioner and patient have a treatment or consulting relationship,

during the course of which the practitioner has completed an assessment of the

patient's medical history and current medical condition, including an appropriate

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 examination and confirmation of the patient having a debilitating medical

condition;

(B) The practitioner has consulted with the patient with respect to the

patient's debilitating medical condition and discussed with the patient any

potential risks and therapeutic or palliative benefits from the medical use of

cannabis in treating or alleviating the patient's debilitating medical condition or

symptoms associated with the debilitating medical condition; and

(C) The practitioner is available to or offers to provide follow-up care and

treatment to the patient;

(4) "Cannabis":

(A) Means all parts of the plant cannabis, whether growing or not; the

seeds of the plant; the resin extracted from any part of the plant; and every

compound, processing, salt, derivative, mixture, or preparation of the plant,

including cannabis products; and

(B) Does not include the mature stalks of the plant, fiber produced from

the stalks, oil or cake made from the seeds of the plant, any other compound,

manufacture, salt, derivative, mixture or preparation of the mature stalks, except

the resin extracted from the mature stalks, fiber, oil, or cake, or the sterilized

seeds of the plant which are incapable of germination; or industrial hemp as

defined in § 43-26-102;

(5) "Cannabis product":

(A) Means cannabis oil, cannabis extract, or a product that is infused with

cannabis oil or cannabis extract and intended for use or consumption; and

(B) Includes capsules, pills, transdermal patches, ointments, lotions,

lozenges, tinctures, oils, and liquids;

(6) "Cardholder" means a qualifying patient or a designated caregiver who has

been issued and possesses a valid registry identification card;

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 (7) "Commission" means the medical cannabis commission, created by § 68-7-

401;

(8) "Community facility" means:

(A) A licensed child care center, as defined in § 71-3-501;

(B) A public park;

(C) A public playground;

(D) A public swimming pool;

(E) A community center, the primary purpose of which is to provide

recreational opportunities or services to children; or

(F) A place of worship;

(9) "Cultivation facility" means an entity licensed by the commission that

acquires, possesses, or cultivates cannabis and that sells cannabis and related supplies

to a processing facility or wholesaler;

(10) "Debilitating medical condition" means:

(A) Cancer;

(B) Human immunodeficiency virus (HIV) or acquired immunodeficiency

syndrome (AIDS);

(C) Hepatitis C;

(D) Amyotrophic lateral sclerosis (ALS);

(E) Post-traumatic stress disorder (PTSD);

(F) Alzheimer's disease;

(G) Severe arthritis;

(H) Inflammatory bowel disease, including Crohn's disease and

ulcerative colitis;

(I) Multiple sclerosis;

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 (J) Parkinson's disease;

(K) Schizophrenia;

(L) A chronic or debilitating disease or medical condition, with a

confirmation of diagnosis, or the treatment of such disease or condition that

produces one (1) or more of the following:

(i) Cachexia or wasting syndrome;

(ii) Peripheral neuropathy;

(iii) Severe chronic pain;

(iv) Severe nausea;

(v) Seizures, including those characteristic of epilepsy; or

(vi) Severe or persistent muscle spasms; and

(M) Any other medical condition approved by the commission in

response to a request from a practitioner or potentially qualifying patient or a

proposal initiated by a member of the commission;

(11) "Designated caregiver" means a person who meets the requirements of §

68-7-202;

(12) "Dispensary" means an entity licensed by the commission that acquires,

possesses, stores, sells, supplies, or dispenses medical cannabis products,

paraphernalia, or related supplies and educational materials to cardholders;

(13) "Disqualifying felony offense" means:

(A) A violent offense, as classified by § 40-35-120(b); or

(B) A violation of a state or federal controlled substances law that was

classified as a felony in the jurisdiction where the person was convicted, not

including:

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 (i) An offense for which the sentence, including any term of

probation, incarceration, or supervised release, was completed five (5) or

more years earlier; or

(ii) An offense that consisted of conduct for which this chapter

would likely have prevented a conviction, but the conduct either occurred

prior to the enactment of this chapter or was prosecuted by an authority

other than the state of Tennessee;

(14) "Enclosed, locked facility" means a room, greenhouse, warehouse, or other

building or enclosed area that is equipped with locks or other security devices that permit

access only by an authorized medical cannabis establishment agent;

(15) "Establishment agent" means an owner, officer, board member, employee,

volunteer, or agent of a medical cannabis establishment;

(16) "Establishment agent registration card" or "registration card" means a

registration card that is issued by the commission to authorize a person to volunteer or

work at a medical cannabis establishment;

(17) "Healthcare facility" means a recuperation center, nursing home, home for

the aged, residential HIV supportive living facility, assisted-care living facility, adult care

home, traumatic brain injury residential home, long-term care facility, adult day care

center, or residential hospice facility;

(18) "License" means a license issued by the commission to authorize the

operation of a medical cannabis establishment;

(19) "Medical cannabis establishment" means a cultivation facility, testing facility,

processing facility, dispensary, wholesaler, or other medical cannabis entity licensed by

the commission;

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 (20) "Medical use" includes the acquisition, administration, cultivation,

manufacture, processing, delivery, harvest, possession, preparation, transfer,

transportation, or use of cannabis, cannabis product, or paraphernalia relating to the

administration of cannabis product to treat or alleviate a registered qualifying patient's

debilitating medical condition or symptoms associated with the patient's debilitating

medical condition. "Medical use" does not include:

(A) The cultivation of cannabis performed outside of a cultivation facility;

(B) The use of cannabis in a form that is not an authorized form; or

(C) The extraction of resin from cannabis by solvent extraction unless the

extraction is done by a processing facility;

(21) "Nonresident card" means a card or other identification that:

(A) Is issued by a state or jurisdiction other than Tennessee; and

(B) Is the functional equivalent of a registry identification card, as

determined by the commission;

(22) "Nonresident cardholder" means a person who meets the requirements of §

68-7-119;

(23) "Practitioner" means a physician who is licensed to practice medicine

pursuant to title 63, chapter 6, or osteopathic medicine pursuant to title 63, chapter 9;

(24) "Processing facility" means an entity licensed by the commission that

acquires or possesses cannabis from a cultivation facility or wholesaler, processes

cannabis to produce cannabis products, and that transfers or sells cannabis products to

a wholesaler;

(25) "Qualified pharmacist" means a pharmacist licensed pursuant to title 63,

chapter 10, who is certified by the commission as competent to consult with cardholders

about proper use and dosage of cannabis products;

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 (26) "Qualifying patient" means a person who has been diagnosed by a

practitioner as having a debilitating medical condition and who meets the requirements

of § 68-7-119 or § 68-7-201;

(27) "Registry identification card" means a document issued by the commission

that identifies a person as a registered qualifying patient or registered designated

caregiver;

(28) "Testing facility" means an independent testing laboratory licensed by the

commission that acquires, possesses, or handles cannabis or cannabis products to

analyze the safety and potency of the cannabis or cannabis products, including any

quality variance standards established by the commission;

(29) "THC" means delta-9-tetrahydrocannabinol, which is a primary active

ingredient in cannabis for medical use;

(30) "Wholesaler" means an entity licensed by the commission that acquires,

possesses, or purchases cannabis or cannabis products from a medical cannabis

establishment for purposes of resale to or transportation to another medical cannabis

establishment; and

(31) "Written certification" means a document dated and signed by a practitioner

that:

(A) States that in the practitioner's professional opinion the patient is

likely to receive therapeutic or palliative benefit from the medical use of cannabis

to treat or alleviate the patient's debilitating medical condition or symptoms

associated with the debilitating medical condition;

(B) Affirms that the certification is made in the course of a bona fide

practitioner-patient relationship; and

(C) Specifies the qualifying patient's debilitating medical condition.

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68-7-103.

(a) A medical cannabis establishment shall not operate in this state unless the

medical cannabis establishment is licensed by the commission.

(b) To be eligible for a license, a person seeking to own or operate a medical

cannabis establishment must submit the application fee described in § 68-7-108 and an

application to the commission in a form prescribed by the commission that meets the

following conditions:

(1) The application must identify the legal name of the medical cannabis

establishment;

(2) The application must identify all owners, officers, and board members

of the medical cannabis establishment, who must:

(A) Not have been convicted of a disqualifying felony offense;

(B) Not have served as an owner, officer, or board member for a

medical cannabis establishment that has had its medical cannabis

establishment license revoked;

(C) Not have previously had a medical cannabis establishment

agent registration card revoked;

(D) Be over twenty-one (21) years of age;

(E) If an owner, be a resident of this state; and

(F) If an owner, not currently serve as an owner for another

medical cannabis establishment or an establishment licensed under title

57 such that serving as an owner of the medical cannabis establishment

for which the application is submitted would violate § 68-7-104(b); and

(G) Each submit the following information to the commission:

(i) The person's name, address, and date of birth; and

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 (ii) A complete set of fingerprints for use in a criminal

history record check submitted on authorized fingerprint cards or

by electronic, machine-readable data, or other means approved

by the Tennessee bureau of investigation and the federal bureau

of investigation;

(3) The application must identify the physical address where the medical

cannabis establishment will be located and address must:

(A) Be located at least one thousand feet (1,000') from all public

or private schools that existed on the date on which the application for the

medical cannabis establishment was submitted to the commission and at

least three hundred feet (300') from all community facilities that existed on

the date on which the application for the medical cannabis establishment

was submitted to the commission. The measurement shall be a building-

to-building measurement;

(B) Be located in a jurisdiction in which the presence of the type

of medical cannabis establishment being proposed is permitted in

accordance with § 68-7-106; and

(C) Meet all local zoning and building requirements;

(4) The application must include evidence that the owner of the real

property on which the medical cannabis establishment will be located has given

express permission to operate the establishment at that location;

(5) The application must include evidence that the applicant controls at

least two hundred fifty thousand dollars ($250,000), or other amount as

determined by the commission, to cover initial expenses of opening the medical

cannabis establishment and complying with this chapter;

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 (6) The application must include:

(A) The social security number of each owner and officer of the

medical cannabis establishment; and

(B) A signed statement from each owner and officer of the

medical cannabis establishment indicating if the owner or officer is

required to pay child support under an order of support and, if so, whether

the owner or officer is in compliance with the order of support;

(7) The application must include operating procedures for the medical

cannabis establishment that are consistent with the commission's rules. The

procedures must include:

(A) Procedures to ensure adequate security;

(B) The use of electronic verification system and an inventory

control system in accordance with §§ 68-7-115 and 68-7-116; and

(C) If the medical cannabis establishment will process,

manufacture, sell, or deliver cannabis products, operating procedures for

handling such products, which must be approved by the commission; and

(8) Any other information as the commission may require by rule.

(c) For each person who submits an application pursuant to this section, and

each person who is to be an owner, officer, or board member of a medical cannabis

establishment, the commission shall submit the fingerprints to the Tennessee bureau of

investigation for use in a criminal history record check by the bureau and, if no record of

a disqualifying felony is identified, the bureau shall send the fingerprints to the federal

bureau of investigation for verification of each person's identity and request the federal

bureau of investigation conduct a criminal history record check.

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 (d) The commission shall not issue a license for any medical establishment

where an owner or officer is more than five hundred dollars ($500) in arrears on child

support payments and the arrears are ninety (90) days or more past due.

(e) The commission shall issue a limited number of licenses in accordance with

§ 68-7-105. Meeting the criteria of this section does not grant any person a right to a

license.

(f) A medical cannabis establishment license expires one (1) year after the date

of issuance and may be renewed upon:

(1) Resubmission of the information set forth in this section, except that

any person who previously submitted fingerprints and received approval on a

prior application does not need to resubmit fingerprints if the person's fingerprints

remain on file with the commission or the Tennessee bureau of investigation; and

(2) Payment of the renewal fee described in § 68-7-108.

68-7-104.

(a) Each medical cannabis establishment must:

(1) Be located in a separate building or facility that is in a location zoned

or designated for commercial, industrial, or agricultural use;

(2) Comply with all local ordinances and regulations pertaining to zoning,

land use, and signage;

(3) If a dispensary, have an appearance, both as to the interior and

exterior, that is professional, orderly, and consistent with the traditional style of

pharmacies and medical offices;

(4) Have discreet and professional signage that is consistent with the

traditional style of signage for pharmacies and medical offices; and

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 (5) Notify the commission of any change in circumstance for any

information required pursuant to § 68-7-103.

(b)

(1) Except as provided in subsection (c), no person who is serving as an

owner of a medical cannabis establishment may serve as an owner for any other

type of medical cannabis establishment.

(2) No person who holds a license issued under title 57 or is an owner of

any entity that holds such a license may serve as an owner of a medical

cannabis establishment.

(3) Except as provided in subsection (c), no medical cannabis

establishment shall be at the same location as another medical cannabis facility.

(c) Notwithstanding subsection (b)(1):

(1) An owner of a cultivation facility may also be an owner of a

processing facility if the processing facility is located as part of or adjacent to the

cultivation facility; and

(2) An owner of a cultivation facility may also be an owner of a

dispensary if:

(A) The dispensary is located in the same grand division of the

state as the cultivation facility;

(B) The dispensary only sells cannabis products that are

produced from cannabis grown at the owner's cultivation facility; and

(C) The owner owns no more than one (1) dispensary.

68-7-105.

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 (a) The commission shall periodically determine the appropriate number of

licenses to issue for each type of medical cannabis establishment. In determining these

limits, the commission shall:

(1) Strive to maintain a ratio of at least one (1) cultivation facility for every

five (5) dispensaries;

(2) Ensure that the number of each type of medical cannabis

establishment is sufficient to adequately serve the needs of qualifying patients;

and

(3) Consider the number of medical cannabis establishments the

commission can effectively regulate to ensure compliance with this chapter.

(b) Once each year, the commission shall accept applications for licenses to

operate medical cannabis establishments. The commission shall publish the dates such

applications will be accepted on its website.

(c)

(1) The commission shall not issue a license to an applicant unless the

applicant meets all the requirements of this chapter.

(2) The commission shall not issue more licenses than the number

determined pursuant to subsection (a). If there are more qualified applicants

than licenses available, the commission shall develop, by rule, a merit-based

system for awarding licenses. This merit-based system shall give preference to

cultivation facilities that will be located in tier 3 or tier 4 enhancement counties in

accordance with § 67-4-2109 and shall also consider:

(A) Whether the applicant has liquid and illiquid financial

resources sufficient to meet the business needs of the medical cannabis

establishment;

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 (B) The previous experience of the owners, officers, or board

members of the medical cannabis establishment at operating other

businesses or organizations;

(C) The educational background of the owners, officers, or board

members of the medical cannabis establishment;

(D) Any demonstrated knowledge or expertise on the part of the

owners, officers, or board members of the medical cannabis

establishment with respect to the medical use of cannabis or cannabis

products;

(E) Whether the location of the medical cannabis establishment

would be convenient to serve the needs of qualifying patients and

designated caregivers who are authorized to engage in the medical use

of cannabis products;

(F) The likely impact of the medical cannabis establishment on

the community in which it is to be located;

(G) The adequacy of the size of the medical cannabis

establishment to serve the needs of qualifying patients and designated

caregivers who are authorized to engage in the medical use of cannabis

products;

(H) Whether the applicant has an integrated plan for the care,

quality, and safekeeping of medical cannabis and cannabis products from

seed to sale;

(I) Where medical cannabis establishments are located in each

grand division and throughout the state; and

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 (J) Any other criteria of merit that the commission determines to

be relevant.

(d) Each medical cannabis establishment license issued shall have a unique

identification number.

68-7-106.

(a) The voters of any county or municipality may, by local option election, permit

the retail sale of medical cannabis product at a licensed dispensary within the territorial

limits of such county or municipality, by a majority vote, at an election held as described

in this section.

(b)

(1) An election shall be called and held by the county election

commission at the next regular election of the county or municipality, as the case

may be, upon receipt of a petition not less than sixty (60) days before the date on

which an election is scheduled to be held, signed by residents of the county or

municipality, to a number amounting to ten percent (10%) or more of the votes

cast in the county or municipality, for governor of the state of Tennessee at the

then last preceding gubernatorial election, requesting the holding of such

election.

(2)

(A) The petition shall be addressed to the appropriate county

election commission and shall read, substantially as follows:

We, registered voters of _____________ (here insert name of

county or municipality, as appropriate), do hereby request the

holding of a local option election to authorize the retail sale of

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 medical cannabis product at a licensed dispensary as provided by

law.

(B) The petition shall also contain:

(i) The genuine signature and address of registered voters

only, pursuant to the requirements of § 2-1-107;

(ii) The printed name of each signatory; and

(iii) The date of signature.

(3) An election called and held in a county shall be applicable only to

those portions of such counties lying without the corporate limits of any

municipality within the county. Petitioners for such elections and the voters

participating in the elections shall reside within those portions of the county lying

outside the corporate limits of such municipalities.

(c)

(1) Registered voters of the county or municipality, as appropriate, may

vote in the election. Ballots shall be in the form prescribed by the general

election laws of the state, except as otherwise provided in this section.

(2) The questions submitted to the voters appearing thereon in county

elections shall be in the following form:

To permit retail sale of medical cannabis product in a licensed dispensary

in_______(Here insert name of county)

Not to permit retail sale of medical cannabis product in a licensed

dispensary in______(Here insert name of county)

(3) The questions submitted to the voters appearing thereon in municipal

elections shall be in the following form:

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 To permit retail sale of medical cannabis product in a licensed dispensary

in_______(Here insert name of municipality)

Not to permit retail sale of medical cannabis product in a licensed

dispensary in______(Here insert name of municipality)

(d)

(1) The county election commission shall certify the results of the election

to the county mayor in county elections and to the mayor of the municipality in

municipal elections.

(2) Not more than one (1) election in any county or municipality shall be

held under this chapter within any period of twenty-four (24) months, except that

no election in a county in which a municipality is located is an election held in

such municipality within the meaning of this subdivision (d)(2).

(e)

(1) The cultivation of medical cannabis at a licensed cultivation facility

and the production of medical cannabis product at a licensed processing facility

are authorized within the territorial limits of each county and municipality of this

state.

(2)

(A) The legislative body of any county may, at any time, opt out of

subdivision (e)(1) and restrict the establishment of a licensed cultivation

facility or licensed processing facility within the unincorporated areas of

the county by passage of a resolution; provided, however, that the

adoption of such resolution shall not serve to restrict the operation of any

licensed cultivation facility or licensed processing facility established in

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 the unincorporated areas of the county prior to the passage of the

resolution.

(B) The legislative body of any municipality or county with a

metropolitan form of government may, at any time, opt out of subdivision

(e)(1) and restrict the establishment of a licensed cultivation facility or

licensed processing facility within its territorial limits by passage of an

ordinance; provided, however, that the adoption of such ordinance shall

not serve to restrict the operation of any licensed cultivation facility or

licensed processing facility established in the territorial limits of the

municipality or county with a metropolitan form of government prior to the

passage of the ordinance.

(C) Any legislative body that has opted out may, at a later date,

opt in by passage of a resolution or ordinance in the same manner as

required to opt out.

(f) A licensed testing facility or wholesaler is authorized within the territorial limits

of each county and municipality of this state.

68-7-107.

In any local government jurisdiction that issues business licenses, the issuance

by the commission of a medical cannabis establishment license shall be deemed to be

provisional until:

(1) The medical cannabis establishment is in compliance with all

applicable local governmental ordinances or regulations; and

(2) The local government has issued a business license for the operation

of the establishment.

68-7-108.

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 (a) The commission shall establish a schedule of fees for the following; provided,

that the fees in aggregate shall not exceed the commission's costs in administering the

state's medical cannabis program by more than twenty percent (20%):

(1) For the initial issuance of a medical cannabis establishment

license for a medical cannabis dispensary;

(2) For the renewal of a medical cannabis establishment license for a

medical cannabis dispensary;

(3) For the initial issuance of a medical cannabis establishment

license for a cultivation facility;

(4) For the renewal of a medical cannabis establishment license for a

cultivation facility;

(5) For the initial issuance of a medical cannabis establishment license

for a processing facility;

(6) For the renewal of a medical cannabis establishment license for a

processing facility;

(7) For the initial issuance of a medical cannabis establishment license

for a testing facility;

(8) For the renewal of a medical cannabis establishment license for a

testing facility;

(9) For the initial issuance of a medical cannabis establishment license

for a wholesaler;

(10) For the renewal of a medical cannabis establishment license for a

wholesaler;

(11) For the initial issuance of a medical cannabis establishment agent

registration card;

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 (12) For the renewal of a medical cannabis establishment agent

registration card;

(13) For the initial issuance of a qualified pharmacist certificate;

(14) For the renewal of a qualified pharmacist certificate; and

(15) For the approval of initial and continuing education courses for

qualified pharmacists.

(b) The commission shall review the fee schedule and its administrative costs

every two (2) years and reschedule fees as necessary to ensure compliance with the

requirement that the fees in aggregate shall not exceed the commission's costs in

administering the state's medical cannabis program by more than twenty percent (20%).

Any rescheduled fees shall become effective the next January 1 after promulgation.

68-7-109.

(a) Except as otherwise provided in this section, a person shall not work or

volunteer at a medical cannabis establishment as a medical cannabis establishment

agent unless the person is registered with the commission pursuant to this section.

(b) A medical cannabis establishment that wishes to employ or retain as a

volunteer a medical cannabis establishment agent shall submit to the commission an

application on a form prescribed by the commission. The application must be

accompanied by:

(1) The name, address, and date of birth of the prospective medical

cannabis establishment agent;

(2) A statement signed by the prospective medical cannabis

establishment agent pledging not to dispense or otherwise divert cannabis to any

person who is not authorized to possess cannabis in accordance with this

chapter;

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 (3) A statement signed by the prospective medical cannabis

establishment agent asserting that the prospective agent has not previously had

a medical cannabis establishment agent registration card revoked;

(4) A complete set of the fingerprints for each prospective medical

cannabis establishment agent for use in a criminal history record check

submitted on authorized fingerprint cards or by electronic, machine-readable

data, or other means approved by the Tennessee bureau of investigation and the

federal bureau of investigation;

(5) The application fee described in § 68-7-108;

(6)

(A) The social security number of the prospective medical

cannabis establishment agent; and

(B) A signed statement from the prospective agent indicating if

the prospective agent is required to pay child support under an order of

support and, if so, whether or not the prospective agent is in compliance

with the order of support; and

(7) Such other information as the commission may require by rule.

(c) A medical cannabis establishment shall:

(1) Collect the medical cannabis establishment agent registration card

from any agent who ceases to be employed by or considered a volunteer at the

medical cannabis establishment;

(2) Notify the commission no later than ten (10) days after a medical

cannabis establishment agent ceases to be employed by or considered a

volunteer at the medical cannabis establishment; and

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 (3) Inform the commission whether the agent's registration card was

collected in accordance with subdivision (c)(1).

(d) The following criteria shall disqualify a person from serving as a medical

cannabis establishment agent:

(1) Being younger than twenty-one (21) years of age;

(2) Having been convicted of a disqualifying felony offense; or

(3) Being more than five hundred dollars ($500) in arrears on child

support payments where the arrears are ninety (90) days or more past due.

(e) For each application submitted pursuant to this section, the commission shall

submit the fingerprints to the Tennessee bureau of investigation for use in a criminal

history record check by the bureau and, if no record of a disqualifying felony is identified,

the federal bureau of investigation for verification of each person's identity and to

conduct a criminal history record check.

(f) An owner, officer, or board member of a medical cannabis establishment who

previously furnished information and fingerprints to the commission pursuant to § 68-7-

103 is not required to resubmit such information or fingerprints in accordance with this

section.

(g) If an applicant for registration as a medical cannabis establishment agent

satisfies the requirements of this section and is not disqualified from serving as such an

agent, the commission shall issue to the person a medical cannabis establishment agent

registration card. If the commission does not act upon an application for a medical

cannabis establishment agent registration card within thirty (30) days after the date on

which the application is received, the application shall be deemed conditionally approved

until such time as the commission acts upon the application. A medical cannabis

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establishment agent registration card expires one (1) year after the date of issuance and

may be renewed upon:

(1) Resubmission of the information set forth in this section; provided,

that fingerprints are not required to be resubmitted if the applicant's fingerprints

remain on file with the commission or the Tennessee bureau of investigation; and

(2) Payment of the renewal fee described in § 68-7-108.

68-7-110.

The following are nontransferable:

(1) A medical cannabis establishment license; and

(2) A medical cannabis establishment agent registration card.

68-7-111.

(a) No person shall transport cannabis or cannabis products on any public

highway unless the person is a medical cannabis establishment agent transporting the

cannabis or cannabis products on behalf of a licensed wholesaler.

(b) All cannabis or cannabis products transported on a public highway must

comply with all inventory tracking rules promulgated by the commission, including any

relevant packaging, labeling, and seals.

(c) Cannabis and cannabis products shall not be transported in the same vehicle

with any other product and shall not be comingled with any other product during

transportation.

(d) The commission shall promulgate rules governing the transportation of

cannabis and cannabis products on public highways in accordance with the Uniform

Administrative Procedures Act, compiled in title 4, chapter 5. The commission shall

consult the commissioner of safety in promulgating these rules.

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 (e) This section shall not apply to an allowable amount of cannabis product in

the possession of a cardholder.

68-7-112.

(a) If the commission receives a certification of noncompliance pursuant to title

36, chapter 5, part 7, indicating that the owner or officer of a medical cannabis

establishment is in arrears on child support payments in the manner described in § 68-7-

103(d), the commission shall immediately suspend the license of the medical cannabis

establishment of the owner or officer and notify the owner or officer of the reason for the

suspension.

(b) If the commission receives a certification of noncompliance pursuant to title

36, chapter 5, part 7, that an establishment agent is in arrears on child support payments

in the manner described in § 68-7-109(d)(3), the commission shall immediately suspend

the agent's establishment agent registration card and notify the agent of the reason for

the suspension.

(c) The commission shall reinstate a medical cannabis establishment license or

medical cannabis establishment agent registration card that has been suspended

pursuant to this section if the commission receives written confirmation of the agent's

reasonable or full compliance with the order of support from the department of human

services, district attorney general, or court. If the license or registration card is restored

pursuant to this subsection (c) prior to its expiration date, no new issuance or renewal

fee is required for the period remaining before the expiration date of the license or card;

provided, that the commission may impose a reasonable reinstatement fee of five dollars

($5.00), or other amount to be set by the commission, for processing of the restoration of

the license or card.

68-7-113.

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 (a) The following are grounds for the commission to immediately revoke a

medical cannabis establishment license:

(1) Dispensing, delivering, or otherwise transferring cannabis to a person

other than a medical cannabis establishment agent, another medical cannabis

establishment, a patient who holds a valid registry identification card, or the

designated caregiver of such a patient;

(2) Acquiring usable cannabis or mature cannabis plants from any

person other than a medical cannabis establishment agent or another medical

cannabis establishment;

(3) Dispensing an unauthorized form of medical cannabis or cannabis

product to a qualifying patient or designated caregiver; or

(4) Violating a rule promulgated pursuant to this chapter; provided, that

such rule, expressly or by reference, provides that a violation of the rule is

grounds for immediate revocation of a medical cannabis establishment license.

(b) The following are grounds for the commission to immediately revoke a

medical cannabis establishment agent registration card:

(1) The commission of any disqualifying felony offense;

(2) Dispensing, delivering, or otherwise transferring cannabis to a person

other than a medical cannabis establishment agent, another medical cannabis

establishment, a patient who holds a valid registry identification card, or the

designated caregiver of such a patient;

(3) Dispensing an unauthorized form of medical cannabis or cannabis

product to a qualifying patient or designated caregiver; or

(4) Violating a rule promulgated pursuant to this chapter; provided, that

such rule, expressly or by reference, provides that a violation of the rule is

- 25 - 010659
 grounds for immediate revocation of a medical cannabis establishment agent

registration card.

(c) The licensure of medical cannabis establishments and registration of medical

cannabis establishment agents is to protect the public health and safety and the general

welfare of the people of this state. Any medical cannabis establishment license issued

pursuant to § 68-7-105 and any medical cannabis establishment agent registration card

issued pursuant to § 68-7-109 is a revocable privilege, and the holder of such license or

registration card, as applicable, does not acquire any vested right in such license or

registration card.

68-7-114.

(a) The operating documents of a medical cannabis establishment must include

procedures:

(1) For the oversight of the medical cannabis establishment; and

(2) To ensure accurate recordkeeping, including the requirements of §§

68-7-115 and 68-7-116.

(b)

(1) Except as otherwise provided in this subsection (b), a medical

cannabis establishment:

(A) That is a dispensary must have a single entrance for patrons,

which must be secure, and shall implement strict security measures,

including twenty-four-hour surveillance, to deter and prevent theft of

cannabis product and unauthorized entrance into areas containing

cannabis product; and

(B) That is not a dispensary must have secure entrances and

shall implement strict security measures, including twenty-four-hour

- 26 - 010659
 surveillance, to deter and prevent theft of cannabis and unauthorized

entrance into areas containing cannabis.

(2) This subsection (b) does not supersede any state or local

requirements relating to minimum numbers of points of entry or exit, or any state

or local requirements relating to fire safety.

(c)

(1) A medical cannabis establishment is prohibited from acquiring,

possessing, cultivating, manufacturing, processing, delivering, transferring,

transporting, supplying, or dispensing cannabis for any purpose except to:

(A) Directly or indirectly assist qualifying patients who possess

valid registry identification cards; and

(B) Assist qualifying patients who possess valid registry

identification cards by way of those patients' designated caregivers.

(2) For purposes of this subsection (c), a person shall be considered a

qualifying patient if the person is a nonresident cardholder who qualifies for

reciprocity pursuant to § 68-7-119.

(d)

(1) A dispensary shall ensure that every cardholder consults with a

qualified pharmacist prior to the first time cannabis products are dispensed to the

cardholder in this state.

(2) A dispensary shall ensure that a cardholder is offered the opportunity

to consult with a qualified pharmacist prior to each time cannabis products are

dispensed to the cardholder.

(3) A consultation pursuant to this subsection (d) may be in person or via

telephone or other live electronic communication.

- 27 - 010659
 (e) All cultivation or production of cannabis that a cultivation facility carries out or

causes to be carried out must take place in an enclosed, locked facility at the physical

address provided to the commission during the licensure process for the cultivation

facility. Such an enclosed, locked facility must be accessible only by medical cannabis

establishment agents who are lawfully associated with the cultivation facility, except that

limited access by persons necessary to perform construction or repairs or provide other

labor is permissible if such persons are supervised by a medical cannabis establishment

agent.

(f) A medical cannabis establishment shall not allow any person to use cannabis

or cannabis products on the property or premises of the establishment.

(g) Medical cannabis establishments are subject to reasonable inspection by the

commission at any time, and a person or entity that holds a medical cannabis

establishment license must be available, or make a representative of the establishment

available, and present for any inspection of the establishment by the commission.

68-7-115.

(a) Each medical cannabis establishment must have the capability to send data

to and receive data from the electronic verification system established by the

commission pursuant § 68-7-205 in real time in a manner prescribed by the commission.

(b) Each dispensary shall check the electronic verification system established by

the commission pursuant to § 68-7-205 prior to dispensing any cannabis product to

determine:

(1) If the cardholder's registry identification card is valid, active, and

belongs to the person presenting the card; and

(2) The amount of cannabis product the cardholder is authorized to

purchase.

- 28 - 010659
 (c) Immediately after dispensing cannabis product to a cardholder, each

dispensary shall submit the following information to the electronic verification system in a

manner prescribed by the commission:

(1) The identification number of the card of the person to whom the

cannabis product was dispensed;

(2) The amount of cannabis product dispensed to the person;

(3) If the cardholder is a designated caregiver, the identification number

of the card of the qualifying patient for whom the product was dispensed; and

(4) Any other information that the commission may require by rule.

68-7-116.

(a) Each medical cannabis establishment shall maintain an inventory control

system that meets the requirements of this section and all requirements established by

the commission.

(b) The inventory control system required pursuant to subsection (a) must be

able to monitor and report information, including:

(1) The chain of custody and current whereabouts, in real time, of

cannabis from the point that a seed is planted at a cultivation facility until it is

processed into a cannabis product at a processing facility;

(2) The chain of custody and current whereabouts, in real time, of a

cannabis product from the point that it is produced at a processing facility until it

is sold at a dispensary;

(3) The name of each person or other medical cannabis establishment,

or both, to which the establishment sold cannabis or a cannabis product;

- 29 - 010659
 (4) In the case of a dispensary, the date on which it sold a cannabis

product to a person who holds a valid registry identification card and the quantity

of cannabis products sold; and

(5) Any other information the commission may require.

(c) Except where otherwise prohibited by federal law, nothing in this section

prohibits more than one (1) medical cannabis establishment from co-owning an

inventory control system in cooperation with other medical cannabis establishments, or

sharing the information obtained from such system.

(d) A medical cannabis establishment must exercise reasonable care to ensure

that the personal identifying information of cardholders contained in an electronic

verification system is encrypted, protected, and not divulged for any purpose not

specifically authorized by law.

(e) In addition to any report filed with law enforcement, a medical cannabis

establishment shall notify the commission within one (1) business day of any theft or

significant loss of cannabis or cannabis product.

68-7-117.

Each dispensary shall ensure the following:

(1) That the weight, content, and concentration of THC, cannabidiol, and

cannabinol in all cannabis products the dispensary sells is clearly and accurately

stated on the product sold;

(2) That the dispensary does not sell to a cardholder, in any one (1)

thirty-day period, more than the allowable amount of cannabis product;

(3) That the dispensary does not sell cannabis product in any form other

than an authorized form; and

- 30 - 010659
 (4) That the authorized forms and allowable amounts of cannabis

products for medical use are clearly and conspicuously posted within the

dispensary.

68-7-118.

(a) At each medical cannabis establishment, cannabis and cannabis products

must be stored in an enclosed, locked facility.

(b) Except as otherwise provided in subsection (c), at each dispensary, cannabis

products must be stored in a secure, locked device, display case, cabinet, or room within

the enclosed, locked facility. The secure, locked device, display case, cabinet, or room

must be protected by a lock or locking mechanism that meets at least the security rating

established by Underwriters Laboratories for key locks.

(c) At a dispensary, cannabis products may be removed from the secure setting

described in subsection (b):

(1)

(A) Only for the purpose of dispensing the cannabis product;

(B) Only immediately before the cannabis product is dispensed;

and

(C) Only by a medical cannabis establishment agent who is

employed by or volunteers at the dispensary; or

(2) For other purposes expressly authorized by the commission and in

strict compliance with procedures established by the commission.

68-7-119.

(a) A nonresident card shall be recognized as valid in this state only under the

following circumstances:

- 31 - 010659
 (1) The state or jurisdiction from which the bearer obtained the

nonresident card grants an exception from criminal prosecution for the medical

use of cannabis;

(2) The state or jurisdiction from which the bearer obtained the

nonresident card requires, as a prerequisite to the issuance of such a card, that a

practitioner advise the person that the medical use of cannabis may mitigate the

symptoms or effects of the person's medical condition;

(3) The nonresident card has an expiration date and has not yet expired;

(4) The nonresident cardholder provides evidence, in the form of a

signed affidavit or other form as determined by the commission, that the

nonresident cardholder is:

(A) Entitled to engage in the medical use, or assist in the medical

use, of cannabis in the person's state or jurisdiction of residence; and

(B) Has been diagnosed with a debilitating medical condition, or

is the parent, guardian, conservator, or other person with authority to

consent to the medical treatment of a person who has been diagnosed

with a debilitating medical condition; and

(5) The nonresident cardholder agrees to comply with restrictions on how

cannabis may be used in this state and the legal limits regarding the allowable

amount that may be possessed for medical use.

(b) For purposes of the reciprocity described in this section:

(1) Neither the authorized form nor the amount of cannabis that the

nonresident cardholder is entitled to possess in the cardholder's state or

jurisdiction of residence is relevant; and

- 32 - 010659
 (2) Under no circumstances, while present in this state, shall the

nonresident cardholder possess cannabis in an amount that exceeds the

allowable amount or in a form that is not an authorized form of cannabis.

(c) The commission shall publish on its website the states or jurisdictions to

which Tennessee grants reciprocity and the affidavit form described in subdivision (a)(4).

68-7-120.

Each dispensary, processing facility, and wholesaler shall, in consultation with

the commission, cooperate to ensure that all cannabis products for sale are:

(1) Labeled clearly and unambiguously as medical cannabis, with the

weight, content, and concentration of THC, cannabidiol, and cannabinol clearly

indicated;

(2) Not presented in packaging or in a form that is appealing to children;

(3) Regulated and sold on the basis of the concentration of THC,

cannabidiol, and cannabinol in the products and not solely by weight; and

(4) Packaged and labeled in such a manner as to allow tracking by way

of an inventory control system.

68-7-121.

(a) The commission shall establish standards for testing facilities to test

cannabis products that are to be sold in this state.

(b) A testing facility must be able to determine accurately, with respect to

cannabis products that are sold or will be sold at dispensaries in this state:

(1) The concentration of THC, cannabidiol, and cannabinol;

(2) Whether the tested material is organic or non-organic;

(3) The presence and identification of mold and fungus;

- 33 - 010659
 (4) The presence, identification, and concentration of any toxic

contaminants, including pesticides and heavy metals;

(5) The presence and concentration of fertilizers and other nutrients; and

(6) The presence of any other substance as required by the commission.

(c) To obtain a testing facility license from the commission, an applicant must:

(1) Apply successfully as required pursuant to § 68-7-103; and

(2) Pay the requisite fees described in § 68-7-108.

68-7-122.

The commission, in consultation with the departments of agriculture and safety,

shall promulgate rules necessary to effectuate the purposes of this chapter, including:

(1) Prescribing the form and any additional required content of

applications submitted pursuant to §§ 68-7-103 and 68-7-109;

(2) Establishing rules pertaining to the safe and healthful operation of

medical cannabis establishments, including:

(A) The manner of protecting against diversion and theft without

imposing an undue burden on medical cannabis establishments or

compromising the confidentiality of cardholders;

(B) Minimum requirements for the oversight of medical cannabis

establishments;

(C) Minimum requirements for recordkeeping by medical

cannabis establishments;

(D) Provisions for the security of medical cannabis

establishments, including requirements for the protection of each medical

cannabis establishment by a fully operational security alarm system; and

- 34 - 010659
 (E) Procedures pursuant to which dispensaries must use the

services of a testing facility to ensure that any cannabis product sold by

the dispensaries to end users are tested for content, quality, and potency

in accordance with standards established by the commission;

(3) Establishing fees described in § 68-7-108 and circumstances and

procedures pursuant to which those fees may be reduced over time, and

ensuring that such fees do not exceed an amount that is twenty percent (20%)

more than the costs of administering this chapter;

(4) Protecting the identity and personal identifying information of each

person who receives, facilitates, or delivers services in accordance with this

chapter while maintaining accountability of such persons;

(5) Establishing different categories of medical cannabis establishment

agent registration cards, including criteria for training and certification, for each of

the different types of medical cannabis establishments;

(6) Establishing:

(A) Authorized forms of cannabis that may be dispensed to and

possessed by cardholders;

(B) Labeling standards and guidelines for cannabis products; and

(C) Standards for identifying the allowable amount of cannabis

products, including THC, cannabidiol, and cannabinol concentration and

recommended doses; provided, that allowable total-THC concentration

does not exceed twenty-five percent (25%); and

(7) Addressing such other matters necessary for the implementation of

this chapter.

68-7-123.

- 35 - 010659
 (a) A person shall not act as a qualified pharmacist unless certified by the

commission in accordance with this section.

(b) To be certified as a qualified pharmacist, a person must submit an

application to the commission in a form prescribed by the commission. The application

must include:

(1) Proof that the applicant is licensed as a pharmacist under title 63,

chapter 10, and in good standing with the board of pharmacy;

(2) Proof that the applicant has completed a board-approved training

course on the use and proper dosing of cannabis products; and

(3) An application fee to be determined by the commission.

(c) Certification as a qualified pharmacist expires one (1) year from the date of

issuance.

(d) Certification may be renewed by submission of a renewal application in a

form prescribed by the commission. The renewal application must include:

(1) Proof that the applicant is still licensed as a pharmacist under title 63,

chapter 10, and in good standing with the board of pharmacy;

(2) Proof that the applicant has completed the required number of

continuing education hours set by the commission; and

(3) A renewal fee to be determined by the commission.

(e) The board shall promulgate rules, in accordance with the Uniform

Administrative Procedures Act, compiled in title 4, chapter 5:

(1) For the approval of courses for initial training of qualified pharmacists

and for continuing education courses; and

(2) To set minimum training and continuing education requirements for

qualified pharmacists.

- 36 - 010659
68-7-201.

(a) Except as provided in subsections (b) and (g), the commission shall issue a

registry identification card to a qualifying patient who is a resident of this state and who

submits an application on a form prescribed by the commission accompanied by the

following:

(1) A written certification issued by a practitioner, including a confirmation

of diagnosis of a debilitating medical condition under § 68-7-102(10)(L) if

applicable, within ninety (90) days immediately preceding the date of the

application;

(2) An application fee of thirty-five dollars ($35.00), or other amount as

determined by the commission;

(3) The name, address, telephone number, social security number, and

date of birth of the qualifying patient;

(4) Proof satisfactory to the commission that the qualifying patient is a

resident of this state;

(5) The name, address, and telephone number of the qualifying patient's

practitioner;

(6) The name, address, telephone number, social security number, and

date of birth of each designated caregiver chosen by the qualifying patient; and

(7) If more than one (1) designated caregiver is designated at any given

time, documentation demonstrating that more than one (1) designated caregiver

is needed due to the patient's age or medical condition, except that a qualifying

patient who is not a resident of a healthcare facility shall not have more than two

(2) designated caregivers at one (1) time.

- 37 - 010659
 (b) The commission shall issue a registry identification card to a qualifying

patient who is less than eighteen (18) years of age if the custodial parent or legal

guardian with responsibility for healthcare decisions for the person under eighteen (18)

years of age:

(1) Submits the materials required pursuant to subsection (a); and

(2) Signs a written statement setting forth that:

(A) The qualifying patient's practitioner has explained the

potential risks and benefits of the medical use of cannabis to the custodial

parent or legal guardian with responsibility for healthcare decisions for the

qualifying patient; and

(B) The custodial parent or legal guardian with responsibility for

healthcare decisions for the qualifying patient consents in writing to:

(i) Allow the qualifying patient's medical use of cannabis

product;

(ii) Serve as the qualifying patient's designated caregiver;

and

(iii) Control the acquisition of the cannabis product, the

dosage, and the frequency of the medical use of cannabis product

by the qualifying patient.

(c) A qualifying patient who is younger than eighteen (18) years of age and who

is emancipated by marriage, court order, or in any other way recognized by law in this

state has all the rights and responsibilities of an adult under this chapter, except to the

extent those rights are restricted by court order.

(d) If a qualifying patient is unable to personally submit the information required

by this section due to the person's age or medical condition, the person responsible for

- 38 - 010659
making medical decisions for the qualifying patient may do so on behalf of the qualifying

patient.

(e)

(1) Upon receipt of an application that is completed and submitted

pursuant to this section, the commission shall:

(A) Record on the application the date on which it was received;

(B) Retain the original application for the records of the

commission; and

(C) Distribute written or electronic copies of the application in the

following manner:

(i) One (1) certified copy to the applicant;

(ii) One (1) copy to the qualifying patent's practitioner; and

(iii) One (1) copy to the board of medical examiners if the

practitioner is licensed to practice medicine pursuant to title 63,

chapter 6, or one (1) copy to the board of osteopathic examination

if the practitioner is licensed to practice osteopathic medicine

pursuant to title 63, chapter 9.

(2) The board of medical examiners or the board of osteopathic

examination, as applicable, shall review the licensure and standing of the

qualifying patient's practitioner and report to the commission its findings no later

than fifteen (15) days after receiving a copy of the application pursuant to

subdivision (e)(1)(C)(iii).

(f)

(1) The commission shall verify the information contained in an

application submitted pursuant to this section and approve or deny the

- 39 - 010659
application within thirty (30) days of receiving a completed application. The

commission may contact the qualifying patient, or qualifying patient's custodial

parent or legal guardian if applicable, and the qualifying patient's practitioner and

designated caregiver by telephone to determine that the information provided on

or accompanying the application is accurate.

(2) Within five (5) days of approving an application, the commission shall

issue registry identification cards to the qualifying patient and the patient's

designated caregiver, if applicable. A designated caregiver must have a registry

identification card for each of the caregiver's qualifying patients.

(g) The commission may deny an application only on the following grounds:

(1) The applicant:

(A) Did not provide the required information, fee, or

accompanying materials;

(B) Materially failed to comply with rules promulgated by the

commission to effectuate the purposes of this chapter;

(C) Previously had a registry identification card revoked; or

(D) Previously had a registry identification card suspended for a

conviction under § 68-7-303(c), possession of an unauthorized form of

cannabis; or

(2) The commission:

(A) Determines that the qualifying patient's practitioner is not

licensed in this state or is not in good standing with the board of medical

examiners or board of osteopathic examination, as applicable; or

(B) Determines that the information provided by the applicant was

falsified.

- 40 - 010659
 (h) If the commission denies an application for a registry identification card, the

qualifying patient or, in the case of an unemancipated person under eighteen (18) years

of age, the person's parent or legal guardian, may appeal the denial with the

commission. The denial of an application for a registry identification card following

administrative review is considered a final action, subject to judicial review. Any

administrative or judicial review of the denial of an application for a registry identification

card shall be in accordance with the procedures set forth in the Uniform Administrative

Procedures Act, compiled in title 4, chapter 5.

(i) A qualifying patient whose application has been denied may not reapply for

sixty (60) days after the date of the denial, unless the commission or a court of

competent jurisdiction authorizes reapplication sooner.

68-7-202.

(a) Upon issuing a registry identification card to a qualifying patient, the

commission shall also issue a registry identification card to each person identified as a

designated caregiver by the qualifying patient; provided, that the designated caregiver:

(1) Is a resident of this state;

(2) Is at least twenty-one (21) years of age or a parent or legal guardian

of a qualifying patient;

(3) Has agreed in writing, in a form prescribed by the commission, to

assist with the qualifying patient's medical use of cannabis product;

(4) Has not been convicted of a disqualifying felony offense;

(5) Has not previously had a registry identification card revoked;

(6) Has not previously had a registry identification card suspended for a

conviction under § 68-7-303(c), possession of an unauthorized form of cannabis;

and

- 41 - 010659
 (7) Does not assist more than five (5) qualifying patients with their

medical use of cannabis product, unless the designated caregiver's qualifying

patients each reside in or are admitted to a healthcare facility where the

designated caregiver is employed.

(b) A qualifying patient may submit an application, in a form prescribed by the

commission, to designate a new caregiver or change the patient's designated caregiver.

An application fee of fifteen dollars ($15.00), or other amount as determined by the

commission, shall apply.

(c) Prior to issuing a registry identification card to a designated caregiver, the

commission shall:

(1) Conduct a criminal history record check of the designated caregiver

to determine whether the prospective caregiver has been convicted of a

disqualifying felony offense;

(2) Verify that the designated caregiver has not previously had a registry

identification card revoked; and

(3) Verify that the designated caregiver does not assist more than five (5)

qualifying patients with their medical use of cannabis product or that the

designated caregiver's qualifying patients reside in or are admitted to a

healthcare facility where the designated caregiver is employed.

(d) The commission may deny the issuance of a registry identification card to a

designated caregiver only if:

(1) The designated caregiver does not meet the requirements of

subsection (a); or

(2) The qualifying patient notifies the commission that the patient no

longer wishes the person to be the patient's designated caregiver.

- 42 - 010659
 (e)

(1) The commission shall give written notice to the qualifying patient and

designated caregiver of the reason for the denial of a registry identification card

for the patient's chosen designated caregiver.

(2) A qualifying patient or, in the case of an unemancipated person under

eighteen (18) years of age, the person's parent or legal guardian, whose chosen

designated caregiver has been denied a registry identification card may appeal

the denial with the commission. The denial of a designated caregiver's registry

identification card following administrative review is considered a final action,

subject to judicial review. Any administrative or judicial review of the denial of a

designated caregiver's registry identification card shall be in accordance with the

procedures set forth in the Uniform Administrative Procedures Act, compiled in

title 4, chapter 5.

(3) In lieu of an appeal, a qualifying patient may submit an application

designating a new designated caregiver.

68-7-203.

(a) Registry identification cards must contain all of the following:

(1) The name of the cardholder;

(2) A designation of whether the cardholder is a qualifying patient or a

designated caregiver;

(3) The date of issuance and expiration date of the registry identification

card;

(4) A random ten-digit alphanumeric identification number, containing at

least four (4) numbers and at least four (4) letters, that is unique to the

cardholder;

- 43 - 010659
 (5) If the cardholder is a designated caregiver, the random identification

number of the qualifying patient the caregiver is designated to assist;

(6) A photograph of the cardholder; and

(7) The telephone number or website for the verification system

established pursuant to § 68-7-205.

(b) Except as provided in subsection (c), the expiration date shall be one (1)

year after the date of issuance.

(c) If the practitioner stated in the written certification that the qualifying patient

would benefit from cannabis until a specified date and for a period of less than one (1)

year, then the registry identification card shall expire on that date.

68-7-204.

A cardholder may submit an application for renewal of an existing registry

identification card no earlier than sixty (60) days prior to the expiration date.

68-7-205.

(a) The commission shall establish and maintain an electronic verification

system. The information kept in the system shall be kept confidential except as provided

in this chapter and shall not be used for any purpose other than that described in this

chapter.

(b) The electronic verification system shall allow law enforcement personnel and

medical cannabis establishments to enter a registry identification number to determine

whether the number corresponds with a current, valid registry identification card. The

system shall disclose only:

(1) Whether the identification card is valid;

(2) The name of the cardholder;

- 44 - 010659
 (3) Whether the cardholder is a qualifying patient or a designated

caregiver;

(4) The registry identification number of any affiliated registered

qualifying patient or designated caregiver;

(5) The allowable amount of cannabis product for that cardholder; and

(6) The amount of cannabis product dispensed to the cardholder within

the past thirty (30) days.

(c) The electronic verification system shall also allow dispensaries to submit the

following information in real time immediately following each transaction where a

cannabis product is dispensed:

(1) The identification number of the card of the person to whom the

cannabis product was dispensed;

(2) The amount of cannabis product dispensed to the person; and

(3) Any other information that the commission may require by rule.

68-7-206.

(a) A cardholder is required to notify the commission as follows:

(1) A registered qualifying patient shall notify the commission of any

change in the patient's name or address, or if the registered qualifying patient

ceases to have the patient's debilitating medical condition, within thirty (30) days

of the change;

(2) A registered designated caregiver shall notify the commission of any

change in the caregiver's name or address, or if the designated caregiver

becomes aware of the death of the caregiver's qualifying patient, within thirty (30)

days of the change; and

- 45 - 010659
 (3) If a cardholder's registry identification card becomes lost or stolen, the

cardholder shall notify the commission within ten (10) days of becoming aware

the card has been lost or stolen.

(b) If a qualifying patient is unable to make the notification required under

subsection (a) due to the patient's age or medical condition, the patient's designated

caregiver shall make such notification.

(c) When a cardholder notifies the commission of a condition identified in

subsection (a) and the cardholder remains eligible under this chapter, the commission

shall inform the cardholder whether a new registry identification card must be issued. If

a new registry identification card is to be issued, the commission shall issue the

cardholder a new card with a new random ten-digit alphanumeric identification number

within ten (10) days of receiving the updated information and any fee required to replace

the card. If applicable, the commission shall also issue a new registry identification card

to the patient's designated caregiver, within ten (10) days of receiving the updated

information.

68-7-207.

(a) If the commission receives notification of a cardholder's conviction under §

68-7-303, the commission shall immediately suspend the cardholder's registry

identification card and promptly notify the cardholder of the reason for the suspension.

(b) The commission shall reinstate a registry identification card that has been

suspended pursuant to subsection (a) upon the commission receiving written

confirmation that the cardholder has fulfilled all the requirements for the sentence

imposed by the court in which the cardholder was convicted of the offense; provided,

that such court may authorize the commission to reinstate the registry identification card

prior to the fulfillment of the requirements for the sentence. If the card is restored

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pursuant to this subsection (b) prior to its expiration date, the cardholder is not required

to pay an application fee for the period remaining before the card's expiration; provided,

that the commission may impose a reasonable reinstatement fee of five dollars ($5.00),

or other amount as determined by the commission, for processing of the restoration of

the card.

(c) If the commission receives notification of a cardholder's conviction under §

68-7-304 or a designated caregiver's conviction for a disqualifying felony offense, the

commission shall immediately suspend the cardholder's registry identification card and

shall begin the process to revoke the cardholder's card in accordance with procedures

established by rule. Except pursuant to court order or commission review on appeal, a

cardholder who has a registry identification card revoked is not eligible to receive or be

issued a registry identification card.

(d) A cardholder or, in the case of an unemancipated person under eighteen (18)

years of age, the person's parent or legal guardian, whose registry identification card has

been suspended or revoked may appeal the suspension or revocation with the

commission in accordance with procedures established by the commission. The

suspension or revocation of a cardholder's registry identification card following an appeal

is considered a final action, subject to judicial review. Jurisdiction and venue for judicial

review are vested in the chancery court of Davidson County.

68-7-301.

(a) It is an exception to the application of title 39, chapter 17, part 4, that, at the

time of the commission of an act constituting an offense under such part, the person:

(1) Possessed a valid registry identification card and was in strict

compliance with this chapter;

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 (2) Was a nonresident cardholder and in strict compliance with the

requirements of this chapter; or

(3) Acted in the person's capacity as a medical cannabis establishment

agent and was in strict compliance with this chapter.

(b) No practitioner shall be subject to arrest or prosecution, penalized in any

manner, or denied any right or privilege, including any disciplinary action by a

professional licensing board, for providing written certification for the medical use of

cannabis for a qualifying patient if:

(1) The practitioner has diagnosed, or confirmed the diagnosis of, the

patient as having a debilitating medical condition;

(2) The practitioner has explained the potential risks and benefits of the

medical use of cannabis;

(3) The written certification is based upon the practitioner's professional

opinion after having completed a full assessment of the patient's medical history

and current medical condition made in the course of a bona fide practitioner-

patient relationship;

(4) The practitioner has not abused the practitioner's authority to provide

written certifications or diagnoses of debilitating medical conditions, including

confirmation of diagnoses as described under § 68-7-102(10)(L); and

(5) The practitioner has complied with the registration requirements of

this chapter.

(c) No professional licensing board shall penalize or take any disciplinary action

against, or deny any right or privilege to, a person solely on the basis of the person's:

(1) Possessing a valid registry identification card and acting in strict

compliance with this chapter;

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 (2) Acting in the person's capacity as a medical cannabis establishment

agent in strict compliance with this chapter; or

(3) If the person is an attorney licensed to practice law in this state,

providing legal advice or services regarding activities authorized under this

chapter.

(d) A qualifying patient or designated caregiver is presumed to be engaged in

the medical use of cannabis pursuant to this chapter if the person is in possession of a

valid registry identification card, issued by this state or another and which must be

displayed upon request of a law enforcement officer, and an amount of cannabis product

in an authorized form that does not exceed the allowable amount.

68-7-302.

Cannabis product, paraphernalia, or other property seized from a qualifying

patient or designated caregiver in connection with a claimed medical use of cannabis

under this chapter shall be returned immediately upon the determination by a court that

the qualifying patient or designated caregiver is entitled to the protections of this chapter,

as evidenced by a decision not to prosecute, dismissal of charges, or an acquittal.

68-7-303.

(a) A qualifying patient shall obtain cannabis product for medical use only from:

(1) A dispensary licensed pursuant to § 68-7-105; or

(2) A designated caregiver.

(b) A designated caregiver shall obtain cannabis product only from a dispensary

licensed pursuant to § 68-7-105.

(c) A qualifying patient or designated caregiver shall not possess cannabis in

any form other than an authorized form.

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 (d) A qualifying patient or designated caregiver shall not possess cannabis

product in an amount that exceeds the allowable amount.

(e) A qualifying patient or designated caregiver who knowingly violates this

section commits a Class B misdemeanor.

68-7-304.

(a) It is an offense for a person to knowingly obtain or attempt to obtain any

cannabis product for medical use by:

(1) Fraud, deceit, misrepresentation, embezzlement, or theft;

(2) The forgery or alteration of a practitioner's written certification;

(3) Furnishing fraudulent medical information or the concealment of a

material fact;

(4) The use of a false name or patient identification number, or the giving

of a false address; or

(5) The forgery or alteration of a state-issued registry identification card.

(b) A violation of subsection (a) is a Class E felony.

68-7-305.

(a) Except in the case of a medical emergency, including seizures, a qualifying

patient shall not use and a designated caregiver shall not administer any medical

cannabis or cannabis product:

(1) In any public place;

(2) On any form of public transportation; or

(3) While a passenger in a motor vehicle.

(b) A qualifying patient or designated caregiver who knowingly violates this

section commits a Class C misdemeanor.

68-7-306.

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 No person shall be subject to arrest, prosecution, or penalty in any manner, or

denied any right or privilege, including any civil penalty or disciplinary action by a court

or occupational or professional licensing board or bureau, for:

(1) Being in the presence or vicinity of the medical use of cannabis; or

(2) Allowing the person's property to be used for activities authorized by

this chapter.

68-7-401.

(a) There is created the medical cannabis commission, which shall consist of

nine (9) members. The members comprising the commission must be of excellent

character and reputation, not be less than thirty (30) years of age, and have been

residents of this state for at least five (5) years preceding their appointment. In making

appointments to the commission, the speakers of the senate and house of

representatives must strive to ensure that at least one (1) person serving on the board is

sixty (60) years of age or older and that at least one (1) person serving on the

commission is a member of a racial minority.

(b) The nine (9) members shall be appointed to the commission as follows:

(1) Three (3) members, appointed by the governor as follows:

(A) One (1) member who has demonstrated expertise and

experience in the field of finance, industry, or commerce;

(B) One (1) member who has demonstrated expertise and

experience in law enforcement; and

(C) One (1) member from the field of higher education who has

demonstrated expertise and experience in horticulture;

(2) Three (3) members, appointed by the speaker of the senate as

follows:

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 (A) One (1) member who is a healthcare professional licensed to

practice medicine pursuant to title 63, chapter 6, or osteopathic medicine

pursuant to title 63, chapter 9;

(B) One (1) member who is a healthcare professional licensed to

practice pharmacy pursuant to title 63, chapter 10; and

(C) One (1) member who has demonstrated expertise and

experience in the field of finance, industry, or commerce; and

(3) Three (3) members, appointed by the speaker of the house of

representatives as follows:

(A) One (1) member who is a healthcare professional licensed to

practice medicine pursuant to title 63, chapter 6, or osteopathic medicine

pursuant to title 63, chapter 9;

(B) One (1) member who is a healthcare professional licensed to

practice pharmacy pursuant to title 63, chapter 10; and

(C) One (1) member who meets the criteria of a qualifying patient.

68-7-402.

(a) In order to stagger the terms of the newly appointed commission members,

initial appointments must be made as follows:

(1) The speaker of the senate shall make three (3) initial appointments

for a term that shall begin on July 1, 2018, and expire on June 30, 2020;

(2) The speaker of the house of representatives shall make three (3)

initial appointments that shall begin on July 1, 2018, and expire on June 30,

2022; and

(3) The governor shall make three (3) initial appointments that shall begin

on July 1, 2018, and expire on June 30, 2024.

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(b)

(1) Following the expiration of members' initial terms as prescribed in

subsection (a), all appointments to the commission shall be for terms of six (6)

years and shall begin on July 1 and terminate on June 30, six (6) years

thereafter.

(2) All members serve until the expiration of the term to which they were

appointed and until their successors are appointed.

(3) A vacancy occurring other than by expiration of term shall be filled in

the same manner as the original appointment but for the balance of the

unexpired term only.

(4) The appointing authority may remove a member appointed by the

authority only for just cause, including misconduct, incompetency, or willful

neglect of duty, after first delivering to the member a copy of the charges against

the member.

(5) Members shall be eligible for reappointment to the commission

following the expiration of their terms, but shall serve no more than two (2)

consecutive six-year terms.

(c)

(1) Any member who is absent from more than four (4) commission

meetings during any twelve-month period shall be removed from the commission

and a new member shall be appointed to fill the remainder of the unexpired term.

(2) The presiding officer of the commission shall promptly notify, or cause

to be notified, the applicable appointing authority of any member who fails to

satisfy the attendance requirement in subdivision (c)(1).

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 (d) Prior to beginning their duties, each member of the commission shall take

and subscribe to the oath of office provided for state officers.

68-7-403.

(a) The official domicile of the commission shall be in Nashville. All meetings of

the commission shall be held in Nashville.

(b) The commissioner of health shall call the first meeting of the board, at which

time, and annually thereafter, the members shall elect a chair and other officers as the

members deem necessary.

(c) The commission shall meet at least one (1) time in Nashville each month,

and shall hold such other meetings for any period of time as may be necessary for the

commission to transact and perform its official duties and functions. The commission

may hold a special meeting at any time it deems necessary and advisable in the

performance of its official duties. Five (5) members of the commission shall constitute a

quorum for the transaction of any business, or in the performance of any duty, power or

function of the commission. A special meeting may be called by the chair, or by a

majority of the commission. The commission may participate by electronic or other

means of communication for the benefit of the public and the commission in connection

with any meeting authorized by law; provided, that a physical quorum is maintained at

the location of the meeting.

68-7-404.

(a) The members of the commission who are appointed by the speakers of the

senate and the house of representatives shall receive annual compensation in the sum

of six thousand dollars ($6,000) per year, which shall be payable in monthly installments

out of the state treasury.

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 (b) All members of the commission shall be reimbursed for their actual and

necessary expenses incurred in connection with their official duties as members of the

commission.

(c) All reimbursement for travel expenses must be in accordance with the

comprehensive travel regulations as promulgated by the department of finance and

administration and approved by the attorney general and reporter.

68-7-405.

(a) The commission shall appoint a director to serve at the pleasure of the

commission. The director's salary shall be fixed by the commission with the approval of

the appropriate state officials as now required by law. The office of the director shall be

in Nashville.

(b) The director must be at least thirty (30) years of age and have been a citizen

and resident of this state for at least five (5) years prior to appointment. The director

must be licensed to practice law in this state. The director shall be designated as

director, medical cannabis commission.

(c) The director is the chief administrative officer of the commission and all

personnel employed by the commission are under the director's direct supervision. The

director shall be solely responsible to the commission for the administration and

enforcement of this chapter and shall be responsible for the performance of all duties

and functions delegated by the commission.

(d) The director shall keep and be responsible for all records of the commission

and shall also serve as secretary of the commission. The director shall prepare and

keep the minutes of all meetings held by the commission, including a record of all

business transacted and decisions rendered by the commission.

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 (e) The director shall act and serve as hearing officer when designated by the

commission and shall perform such duties as hearing officer as now authorized under

this chapter.

(f) The commission is authorized to appoint an assistant director who shall

perform such duties and functions which may be assigned by the director or the

commission. The assistant director, if licensed to practice law in the state of Tennessee,

may also be designated by the commission to sit, act, and serve as a hearing officer

and, when designated as a hearing officer, the assistant director is authorized to perform

the same duties and functions as the regular hearing officer is now authorized under this

chapter.

(g) The director and assistant director shall be reimbursed for travel expenses in

accordance with the comprehensive travel regulations as promulgated by the

department of finance and administration and approved by the attorney general and

reporter.

68-7-406.

The commission is authorized to appoint a chief law enforcement officer who

serves at the pleasure of the commission. The chief law enforcement officer shall:

(1) Be under the immediate supervision of the director;

(2) Be at least thirty (30) years of age;

(3) Have been a citizen and resident of this state for at least five (5)

years prior to appointment;

(4) Have had experience and training in law enforcement work and

qualifications identical to that required for members of the Tennessee bureau of

investigation; and

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 (5) Be reimbursed for travel expenses in accordance with the

comprehensive travel regulations as promulgated by the department of finance

and administration and approved by the attorney general and reporter.

68-7-407.

(a) The commission is authorized, by and with the consent of the governor, to

employ such attorneys, inspectors, agents, officers, and clerical assistance as may be

necessary for the effective administration and enforcement of this chapter. The

compensation of such personnel shall be approved by the governor.

(b) All fees authorized by this chapter shall be paid into the general fund and

credited to a separate account for the commission. Funds in this account shall be used

solely for the implementation and enforcement of this chapter by the commission,

subject to the approval of the commissioner of finance and administration with the

approval of the governor. It is the intent of the general assembly that this account be the

sole source of funds for the commission and that the amount appropriated to the

commission shall not exceed the amount collected from fees under this chapter;

provided, however, that additional funds may be appropriated to the commission during

the first year of its operation to assist with initial expenses.

(c) The director, the chief law enforcement officer, and all other law enforcement

personnel shall be employed only on a full-time basis.

68-7-408.

(a) No person shall be eligible to be appointed as a member of the commission,

and no person shall be employed in any capacity by the commission, if such person has

any interest, financial or otherwise, either direct or indirect, in any medical cannabis

establishment licensed as such in this state. No family member, including spouse, child

or children, father or mother, niece or nephew by blood or marriage, son-in-law or

- 57 - 010659
daughter-in-law, shall be employed by any medical cannabis establishment, nor shall

any family member hold or have issued to them any medical cannabis establishment

license.

(b) No such person shall have interest of any kind in any building, fixtures, or in

the premises occupied by any person or entity licensed under this chapter.

(c) No such person shall own any stock, nor shall have any interest of any kind,

direct or indirect, pecuniary or otherwise, by a loan, mortgage, gift, seeking a loan, or

guaranteeing the payment of any loan, in any medical cannabis establishment under this

chapter.

(d)

(1) Notwithstanding § 3-6-304 or any other law to the contrary, and in

addition to all other requirements for membership on the commission:

(A) Any person registered as a lobbyist pursuant to the

registration requirements of title 3, chapter 6, who is subsequently

appointed or otherwise named as a member of the commission must

terminate all employment and business association as a lobbyist with any

entity whose business endeavors or professional activities are regulated

by the commission, prior to serving as a member of the commission;

(B) No person who is a member of the commission shall be

permitted to register or otherwise serve as a lobbyist pursuant to title 3,

chapter 6, for any entity whose business endeavors or professional

activities are regulated by the commission during such person's period of

service as a member of the commission; and

(C) No person who serves as a member of the commission shall

be employed as a lobbyist by any entity whose business endeavors or

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 professional activities are regulated by the commission for one (1) year

following the date such person's service on the commission ends.

(2) A person who violates this subsection (d) shall be subject to the

penalties prescribed in title 3, chapter 6.

(3) The bureau of ethics and campaign finance is authorized to

promulgate rules to effectuate the purposes of this subsection (d). All such rules

and regulations shall be promulgated in accordance with the Uniform

Administrative Procedures Act, compiled in title 4, chapter 5, and in accordance

with the procedure for initiating and proposing rules by the ethics commission to

the bureau of ethics and campaign finance as prescribed in § 4-55-103.

68-7-409.

(a) No member of the commission and no person employed by the commission

shall knowingly accept any gift, favor, merchandise, donation, contribution, or any article

or thing of value, from any person or entity licensed under this chapter.

(b) No such person shall conspire with any other person to violate this section or

attempt to violate this section.

(c) Any person violating this section shall be dismissed and discharged from

employment or position, and as a consequence the person shall forfeit any pay or

compensation which might be due.

(d) A violation of this section is a Class C misdemeanor.

(e) When any medical cannabis establishment licensed under this chapter, or

any person employed by any medical cannabis establishment, knowingly violates,

conspires with any other person to violate, or attempts to violate this section, it is the

mandatory duty of the commission to revoke such person's license or registration card.

68-7-410.

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 (a) The commission is empowered and authorized to promulgate such rules,

including emergency rules, as may be necessary to effectuate the purposes of this

chapter and to carry out the functions, duties, and powers of the commission as provided

in this chapter. All such rules must be promulgated in accordance with the Uniform

Administrative Procedures Act, compiled in title 4, chapter 5. The commission shall

enforce and administer this chapter and the rules made by it.

(b) The commission shall have and exercise the following functions, duties, and

powers:

(1) Issue all licenses for the cultivation, processing, testing,

transportation, sale, and dispensing of medical cannabis and cannabis product,

and to revoke any license authorized by this chapter under the following

conditions:

(A) Any revocation of any license shall be made by the

commission only on account of the violation of, or refusal to comply with,

any of the provisions of this chapter or any rule of the commission, after

not less than ten (10) days' notice to the holder of the license proposed to

be revoked, informing such licensee of the time and place of the hearing

to be held, and all further procedure with reference to the revocation of

any license shall be fixed and prescribed in the rules adopted and

promulgated by the commission;

(B) No person has a property right in any license issued under

this chapter; and

(C) The commission shall hold a hearing to determine whether

such license shall be revoked, which hearing shall be held in accordance

with the contested case provisions compiled in title 4, chapter 5, part 3,

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 whenever any of the following certifies that any licensee has habitually

violated this chapter, or any regulation adopted by the county legislative

bodies or legislative councils, relative to the conduct and operation of the

business provided for in this chapter:

(i) The county mayor or majority of the commission, if a

license has been issued outside the corporate limits of the

municipality; or

(ii) The mayor or majority of the commission, city council,

or legislative council of a municipality within which a license has

been issued;

(2) Refuse to issue a license or registration card if, upon investigation,

the commission finds that the applicant for a license or registration card has

concealed or misrepresented in writing or otherwise any material fact or

circumstance concerning the operation of the business or employment, or if the

interest of the applicant in the operation of the business or employment is not

truly stated in the application, or in case of any fraud or false swearing by the

applicant touching any matter relating to the operation of the business or

employment. If a license or registration card has been issued, the commission

shall issue a citation to the licensee or registrant to show cause why the license

or registration card should not be suspended or revoked. All data, written

statements, affidavits, evidence, or other documents submitted in support of an

application are a part of the application;

(3) Conduct investigations and audits for enforcing and preventing

violations of this chapter;

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 (4) Summon any applicant for a license or registration card and also to

summon and examine witnesses, and to administer oaths to such applicants and

witnesses in making any investigation;

(5) Prescribe reporting and educational programs the commission deems

necessary or appropriate to ensure that the laws governing licensees and

registration cards are observed;

(6) Prevent parts of the premises connected with or in any sense used in

connection with the premises, where the possession, cultivation, production,

transportation, delivery, receipt, sale, or purchase of medical cannabis or

cannabis product may be lawful, from being used as a subterfuge, or means of

evading the provisions of this chapter or the rules of the commission;

(7) Require, on licensed premises, the destruction or removal of any

containers or devices used or likely to be used in evading, violating, or preventing

the enforcement of this chapter or the rules of the commission;

(8) Regulate the advertising, signs and displays, posters, or designs

intended to advertise any medical cannabis product or the place where the same

is sold;

(9) Refuse to issue or renew a license or registration card, or issue a

citation if, upon investigation, the commission finds that the applicant for a

license or registration card has not demonstrated the financial capacity to

operate the business in a manner consistent with the regulations of the

commission or is not generally paying its debts as they come due except for

debts as to which there is a bona fide dispute; and

(10) Collect all license fees paid or due the state on account of each

license issued to a medical cannabis establishment, or in respect to the renewal

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 of any of such licenses. The commission shall deposit collections with the state

treasurer to be earmarked for and allocated to the commission for the purpose of

the administration and enforcement of the duties, powers, and functions of the

commission.

68-7-411.

In addition to its functions, duties, and powers under § 68-7-410, the commission

shall:

(1) Accept and review petitions submitted by practitioners and potentially

qualifying patients regarding medical conditions, medical treatments, or diseases

to be added to the list of debilitating medical conditions that qualify for the

medical use of cannabis;

(2) Consider for approval any debilitating medical conditions, medical

treatments, or diseases to be added to the list of debilitating medical conditions

that qualify for the medical use of cannabis;

(3) Promulgate rules regarding:

(A) Cannabis products, including allowable amounts, labeling

standards, doses, or serving sizes;

(B) Approved forms or uses of cannabis products;

(C) Fees; and

(D) Security requirements for medical cannabis establishments;

(4) Consider complaints or reports regarding alleged abuses by

practitioners relative to written certifications or diagnoses of debilitating

conditions and notify the appropriate professional licensing board if the advisory

board considers such complaint or report to be well-founded;

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 (5) Accept, review, and, if appropriate, approve requests for waivers for

individualized exceptions to dosing restrictions; and

(6) Establish a medical cannabis research certification program in which

the commission considers, approves, and grants research licenses to four-year

public or private institutions of higher education located in this state for purposes

of studying medical cannabis or cannabis products.

68-7-412.

The commission is authorized to investigate and examine the premises of any

medical cannabis establishment, including the books, papers, and records of any

medical cannabis establishment, for the purpose of determining compliance with this

chapter. Any refusal to permit the examination of any such books, papers, and records,

or the investigation and examination of such premises, constitutes sufficient reason for

the revocation of a license or the refusal to issue a license.

68-7-413.

In any action or suit brought against the members of the commission in their

official capacity in a court of competent jurisdiction, to review any decision or order

issued by the commission, service of process issued against the commission may in

their absence be lawfully served or accepted by the director on behalf of the commission

as though the members of the commission were personally served with process.

68-7-414.

(a) In any case where the commission is given the power to suspend or revoke

any license or registration card, it may impose a fine in lieu of or in addition to

suspension or revocation. The commission shall promulgate by rule pursuant to the

Uniform Administrative Procedures Act, compiled in title 4, chapter 5, a schedule setting

forth a range of fines for each violation. The commission shall deposit collections of any

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fine with the state treasurer, for the general funds of the state. For the purpose of

imposing fines, each violation may be treated as a separate offense.

(b) Any document a person receives informing the person or entity of having a

fine imposed upon such person or entity shall cite each particular rule or statute the

person or entity is being charged with violating.

(c) In any case where the commission is authorized to suspend or revoke a

license or registration card, it may enter into an agreement by order with the licensee or

registrant where the licensee or registrant voluntarily surrenders the license or

registration card. The surrender shall be deemed a revocation of the license or

registration card.

68-7-415.

Any action brought against the commission as such shall be brought in the circuit

court of Davidson County.

68-7-416.

(a) The commission shall file a report with the attorney general and reporter

whenever any person or entity licensed under this chapter:

(1) Fails to account for or pay over any license fees or taxes or levies

pursuant to this chapter; or

(2) Has failed or refused to pay any obligations or liability or penalty

imposed by this chapter.

(b) Upon receipt of the report under subsection (a), the attorney general and

reporter shall institute the necessary action for the recovery of any such license fee, tax,

levy, or any sum due the state of Tennessee under this chapter. The respective district

attorney general is ordered and directed to assist the attorney general and reporter

whenever required under this subsection (b).

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68-7-417.

To the end that this chapter may be better enforced, the grand juries of this state

shall have and are clothed with inquisitorial power to inquire into and ascertain whether

there has been any violation of this chapter, and to return indictments in proper cases. It

shall be the duty of all circuit and criminal court judges to give this law in their charges to

the grand juries of the state, and all law enforcement officers charged with the

enforcement of the laws of the state are also required to enforce this chapter.

68-7-418.

(a) Any duly authorized representative or employee of the commission, who has

been designated by the commission to enforce this chapter, is authorized and

empowered to go armed, or carry a pistol while on active duty engaged in enforcing this

chapter.

(b) Any such duly authorized representative or employee of the commission who

has been designated by the commission to enforce this chapter is authorized and

empowered to execute search warrants and do all acts incident to the execution of a

warrant, in the same manner as search warrants may be levied by law enforcement

officers.

68-7-419.

The director of the commission shall file an annual report with the state and local

government and the health and welfare committees of the senate and the state

government and the health committees of the house of representatives no later than

March 1 detailing with specificity each rule promulgated during the previous year

together with the rationale for promulgating the rule.

68-7-420.

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 The commission is authorized to investigate or to arrest, without warrant or

process of any kind, any person whom the arresting officer has probable cause to

believe is committing or attempting to commit a felony in violation of title 39, chapter 17,

part 4, if the felony is committed on premises licensed by the commission or on any

premises under investigation by the commission in conjunction with its other duties and

responsibilities.

68-7-421.

Any agent of the medical cannabis commission who retires after twenty-five (25)

years of honorable service shall be issued by the commission a retired commission card,

which shall identify the agent, the agent's department and rank, and the fact that the

agent is retired. Cards issued under this section shall bear the inscription, in print of

equal or larger size than the rest of the printing on the card, the words "Not a handgun

permit." After twenty-five (25) years of honorable service as an agent of the

commission, the commission shall authorize the agent, upon retirement, to retain the

agent's service weapon, in recognition of the agent's many years of good and faithful

public service.

68-7-422.

(a) Notwithstanding any other law to the contrary, the commission may assess

the actual and reasonable costs of any hearing held in accordance with the contested

case provisions compiled in title 4, chapter 5, part 3, and in which sanctions of any kind

are imposed on any person or entity required to be licensed by or registered with the

commission. These costs may include those incurred and assessed for the time of the

prosecuting attorneys, investigators, expert witnesses, administrative judges, and any

other persons involved in the investigation, prosecution, and hearing of the action.

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 (b) The commission shall promulgate rules establishing a schedule of costs that

may be assessed pursuant to this section. All such rules shall be promulgated in

accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter

5.

(c)

(1) All costs assessed pursuant to this section shall become final thirty

(30) days after the date a final order of assessment is served.

(2) If the individual or entity disciplined fails to pay an assessment when

it becomes final, the commission may apply to the appropriate court for a

judgment and seek execution of the judgment.

(3) Jurisdiction for recovery of the costs shall be in the chancery court of

Davidson County.

68-7-501.

(a) Nothing in this chapter requires:

(1) A government medical assistance program or private insurer to

reimburse a person for costs associated with the medical use of cannabis;

(2) Any person or establishment in lawful possession of real property to

allow a guest, client, customer, or other visitor to use cannabis products on or in

that property; or

(3) Any correctional facility to allow the possession or use of medical

cannabis on the facility's grounds.

(b) Except where otherwise prohibited by federal law, nothing in this chapter

prohibits an employer from disciplining an employee for using a medical cannabis

product in the workplace or for working while under the influence of a medical cannabis

product.

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 68-7-502.

(a) Any healthcare facility may adopt reasonable restrictions on the use of

cannabis by their residents or persons receiving inpatient services, including that:

(1) The facility will not store or maintain the patient's supply of cannabis

product;

(2) The facility, caregivers, or agencies serving the facility's residents are

not responsible for providing the cannabis product for qualifying patients; and

(3) Cannabis product be used or administered only in a place specified

by the facility.

(b) Nothing in this section requires a healthcare facility to adopt restrictions on

the medical use of cannabis.

(c) A healthcare facility shall not unreasonably limit a registered qualifying

patient's access to or use of medical cannabis authorized under this chapter unless

failing to do so would cause the facility to lose a monetary or licensing-related benefit

under federal law.

SECTION 2. Tennessee Code Annotated, Section 4-29-241(a), is amended by adding

the following as a new subdivision:

( ) Medical cannabis commission, created by § 68-7-401;

SECTION 3. Tennessee Code Annotated, Section 39-17-427, is amended by deleting

the section and substituting instead the following:

It is an exception to this part if the person lawfully possessed or distributed the

controlled substance as otherwise authorized by this part; title 53, chapter 11, parts 3

and 4; or title 68, chapter 7.

SECTION 4. Tennessee Code Annotated, Section 67-6-320(a), is amended by deleting

the following language:

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 There is exempt from the tax imposed by this chapter any drug, including over-

the-counter drugs, for human use dispensed pursuant to a prescription. This exemption

shall not apply to grooming and hygiene products.

and substituting instead the following:

There is exempt from the tax imposed by this chapter any drug, including over-

the-counter drugs, for human use dispensed pursuant to a prescription. This exemption

shall not apply to grooming and hygiene products or medical cannabis products

dispensed pursuant to title 68, chapter 7.

SECTION 5. Tennessee Code Annotated, Title 67, Chapter 6, Part 2, is amended by

adding the following new section:

Notwithstanding this title to the contrary:

(1) The retail sale of medical cannabis products pursuant to the Medical

Cannabis Act, compiled in title 68, chapter 7, shall be taxed at the rate of five

percent (5%) of the sales price; and

(2) Tax collected from the retail sale of medical cannabis products shall

be apportioned and allocated in the following manner:

(A) Ten percent (10%) to the Tennessee bureau of investigation

to be used for drug enforcement purposes;

(B) Five percent (5%) to sheriffs' offices throughout the state to be

used for drug training, including training related to the Medical Cannabis

Act;

(C) Five percent (5%) to police departments throughout the state

to be used for drug training, including training related to the Medical

Cannabis Act;

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 (D) Fifteen percent (15%) to the department of intellectual and

developmental disabilities;

(E) Twenty percent (20%) to the department of mental health and

substance abuse services;

(F) Twenty percent (20%) to the department of education for

kindergarten through grade twelve (K-12) educational purposes;

(G) Fifteen percent (15%) to the account in the general fund

designated in § 16-22-109(e)(4) established for the exclusive use of the

department of mental health and substance abuse services to assist

existing veterans treatment court programs, as defined in § 16-6-101, and

to create and establish veterans treatment court programs; and

(H) Ten percent (10%) to the drug court treatment program

resources fund to be administered by the department of mental health

and substance abuse services, in accordance with § 16-22-110, to

support drug court treatment programs, as defined in § 16-22-103.

SECTION 6. Tennessee Code Annotated, Section 67-6-702, is amended by adding the

following as a new subsection:

Notwithstanding any other provisions of this chapter, local tax with respect to

medical cannabis products that are subject to state tax shall be imposed at the rate of

two percent (2%).

SECTION 7. Tennessee Code Annotated, Section 39-17-402(16), is amended by

adding the following new subdivisions:

( ) The term “marijuana” does not include oil containing the substance

cannabidiol, with less than nine-tenths of one percent (0.9%) of tetrahydrocannabinol, if:

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 (i) The bottle containing the oil is labeled by the manufacturer as

containing cannabidiol in an amount less than nine-tenths of one percent (0.9%)

of tetrahydrocannabinol; and

(ii) The person in possession of the oil retains:

(a) Proof of the legal order or recommendation from the issuing

state; and

(b) Proof that the person or the person's immediate family

member has been diagnosed with one (1) of the following conditions by a

medical doctor or doctor of osteopathic medicine who is licensed to

practice medicine in the state of Tennessee:

(1) Intractable seizures or epilepsy; or

(2) Autoimmune disease, including psoriatic and

rheumatoid arthritis, psoriasis, Lupus, and Crohn's disease; and

( ) The term "marijuana" does not include cannabis oil containing the substance

cannabidiol, with less than six tenths of one percent (0.6%) of tetrahydrocannabinol,

including the necessary seeds and plants, when manufactured, processed, transferred,

dispensed, or possessed by a four-year public or private institution of higher education

certified by the drug enforcement administration located in the state as part of a clinical

research study on the treatment of intractable seizures, cancer, or other diseases;

SECTION 8. Notwithstanding any other law to the contrary, in accordance with the

Uniform Administrative Procedures Act, compiled in title 4, chapter 5, the department of financial

institutions shall promulgate rules authorizing medical cannabis establishments to use banking

services, including the depositing of revenue, in Tennessee-chartered banks or other

Tennessee-chartered financial institutions.

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 SECTION 9. For purposes of establishing the medical cannabis commission,

promulgating rules, and conducting local option elections, this act shall take effect upon

becoming a law, the public welfare requiring it. Section 7 of this act shall take effect at 12:01

a.m. on July 1, 2018, the public welfare requiring it. For all other purposes, the remaining

sections of this act shall take effect January 1, 2019, the public welfare requiring it.

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